On december 31 2013 prepare the adjusting entry to record

Reference no: EM13599522

Ryder Company, which began operations in 2011, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities.

2011
Jan. 20 Purchased 800 shares of Ford Motor Co. at $27 per share plus a $120 commission.
Feb. 9 Purchased 2,700 shares of Lucent at $30 per share plus a $190 commission.
Oct. 12 Purchased 720 shares of Z-Seven at $7.60 per share plus a $95 commission.

2012
Apr. 15 Sold 800 shares of Ford Motor Co. at $30 per share less a $295 commission.
July 5 Sold 720 shares of Z-Seven at $11.00 per share less a $95 commission.
July 22 Purchased 1,800 shares of Hunt Corp. at $32 per share plus a $225 commission.
Aug. 19 Purchased 1,600 shares of Donna Karan at $14 per share plus a $105 commission.

2013
Feb. 27 Purchased 3,800 shares of HCA at $37 per share plus a $440 commission.
Mar. 3 Sold 1,800 shares of Hunt at $27 per share less a $125 commission.
June 21 Sold 2,700 shares of Lucent at $27.75 per share less a $32 commission.
June 30 Purchased 1,400 shares of Black & Decker at $47.50 per share plus a $595 commission.
Nov. 1 Sold 1,600 shares of Donna Karan at $23.20 per share less a $124 commission.

1.Prepare journal entries to record these short-term investment activities for the years shown. (Ignore any year-end adjusting entries.)
2. On December 31, 2013, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities when HCA's share price is $39 and Black & Decker's share price is $43.5. (Assume the Fair Value Adjustment-Trading account had an unadjusted balance of zero.)

Reference no: EM13599522

Questions Cloud

A publicly owned corporation the companys outstanding stock : prairie fire snowmobile corp. manufactures and sells snowmobiles in wisconsin minnesota and the dakotas. a publicly

Wat is the average issue price per share of common stock : below is the stockholders equity section of nexis corporation dated 1231x0 with some information missing stockholders

Wood company has beginning work in process inventory of : wood company has beginning work in process inventory of 108000 and total manufacturing costs of 477000. if cost of

Becker co wrote off 45000 in bad debts in 20x1 required a : becker co. wrote off 45000 in bad debts in 20x1. required a. prepare the write-off entry using the direct write-off

On december 31 2013 prepare the adjusting entry to record : ryder company which began operations in 2011 invests its idle cash in trading securities. the following transactions

The durn company began operations at the beginning of 2010 : the durn company began operations at the beginning of 2010. at the end of 2010 the company reported taxable income of

Specal assessmentdebt may be in economic substance andor : specal assessmentdebt may be in economic substance andor legal form an obligation of the asessed property owners rather

Although many governments prepare budgets for both capital : although many governments prepare budgets for both capital projects and debt service funds the gasb does not mandate

Maintenance department costs of 320000 are allocated on the : maintenance department costs of 320000 are allocated on the basis of budgeted maintenance-hours. personnel department

User Account

All Pages